Regional foreign direct investment and wage spillovers:plant level evidence from the UK electronics industry


This paper examines the extent to which foreign investment in the UK generates wage spillovers in the domestic sector of the economy using a simultaneous dynamic panel data model and focusing on the electronics sector, possibly the most ‘globalized’ sector of UK manufacturing. It finds evidence that the higher wages paid by foreign firms cause wages in the domestic sector to be bid up. This phenomenon is, however, largely confined to the region where foreign direct investment takes place.

Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research
Additional Information: The definitive version is available at © 2003 Blackwell Publishing Ltd and the Department of Economics, University of Oxford
Publication ISSN: 1468-0084
Last Modified: 29 Nov 2023 10:03
Date Deposited: 13 Oct 2009 15:30
Full Text Link: 10.1111/1468-0084.t01-1-00057
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL) ... 706094/abstract (Publisher URL)
PURE Output Type: Article
Published Date: 2003-09
Authors: Driffield, Nigel
Girma, Sourafel



Version: Accepted Version

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